CPC got rid of the “Chinese partisans”? Did Wall Street's “real money” actually buy the midsole? (Follow and comment to send 66 points)

From continuous diving to a dark scene, to the recovery in expectations brought about by the current violent backlash.

China Securities experienced a moment of nirvana.

Recently, with leading HHLR and J.P. Morgan, the top investment bank on Wall Street, and other 100 billion dollars of private placement, the top investment bank on Wall Street, etc., they have “bottomed out” one after another to increase their stock holdings. Overall, they are bullish, and seem to be gradually becoming the mainstream voice in the market.

$Hang Seng Index (800000.HK)$ Today, it has risen by more than 3%.$Hang Seng TECH Index (800700.HK)$ A sharp increase of 5.78%,$BABA-W (09988.HK)$$TENCENT (00700.HK)$$JD-SW (09618.HK)$ The average increase was more than 5%.

The Chinese leaders ushered in a mass outbreak!

Is it a short-term recovery? Or hasn't it been built yet? Are there any investment opportunities in China Securities in the future?

Leaving aside short-term fluctuations, ILet's try to talk about the future of China's stock market and the investment opportunities behind it from a macro perspective, capital perspective, and fundamentals.

01 China's economy is improving, spawning high-quality enterprises.

As we understand China Securities, from a broad perspective, all listed Chinese companies, whether they are US stocks, Hong Kong stocks, or China A shares, can be called China Securities.

When you invest, you buy an enterprise, and the soil for a business to survive will always be the country where it is located.If the country's development is booming, then enterprise development is also more likely to ride out the waves. Buffett's investment record that has attracted worldwide attention is largely due to the fact that during his investment career, the US has been on an uphill path for most of his investment career.

China's economy has developed rapidly over the past few decades, and a large number of excellent enterprises have sprung up; at the moment of the COVID-19 pandemic,With its huge market, stable situation, and manufacturing capacity in all categories, China is still the economy with the most stable growth and the strongest economic vitality in the world.

Benchmarking the development path of the US stock market,In the future, China is expected to see a large number of outstanding enterprises and long-term bullish stocks in fields such as big consumption, health care, and emerging technological innovation.

In terms of policy, China Securities is also getting rid of uncertainty. The frequent release of favorable news has led to a collective rise in China Securities.

02 More capital inflows to inject more liquidity into China Securities.

The attitude of “real money” is always a true attitude of interest.

Change the previous “bearish” attitude,$JPMorgan (JPM.US)$ However, real money was put back on China Securities.

In the first quarter, China funds owned by J.P. Morgan Chase increased their positions in JD in a big way. The increase in positions was as high as 1253%, and the market value of their holdings was as high as US$212 million.

At the same time, “top investors” on Wall Street are also using practical actions to increase their holdings in China's capital stock market. Among them, Qiaoshui, represented by Qiaoshui, has increased its holdings of Alibaba by 3,212,200 shares, and leading companies such as Pinduoduo, Baidu, and Tencent have all become popular companies.

Although foreign-invested stocks may experience twists and turns in the short term due to policy or market reasons,However, the long-term trend has been increasing, and there is still plenty of room for improvement.

Currently, foreign investors can freely invest in Hong Kong stocks and US stocks in Chinese securities, and can also invest in A shares through A-share and Shanghai-Shenzhen Stock Connect. In recent years, the market value of China's A shares purchased by foreign investors through channels such as Shanghai and Shenzhen Stock Connect, QFII, and RQFII is close to 3 trillion yuan. Among them, the market value of shares held by Shanghai and Shenzhen Stock Connect exceeded 2.5 trillion yuan in 2020, which is more than three times that of 2018, yet it accounts for only 3% of the total market value of A shares, far lower than that of most emerging market countries.As China's capital market continues to open up, overseas investors may continue to increase their investment in Chinese assets, bringing more liquidity to China's securities.

On the other hand, from the perspective of domestic capital, in the context of the reallocation of residents' wealth, China Securities is expected to welcome more capital and liquidity.

In the past, under the expectation that housing prices would rise forever, the wealth owners of Chinese residents were tied to the property market. Most people bought houses when they had money. The property market attracted most of the capital, so capital flowing into the stock market was very limited. In recent years, under policy regulation, investment in housing speculation has been curbed to a certain extent, and the wealth effect of real estate is weakening as a result. Some of the capital flowing out of real estate may flow to the stock market.

In addition to this,In recent years, the idle capital of Chinese residents has also been slowly shifting from savings and capital protection to the securities market, which in turn has brought more capital injection into China's stock market.

The development of the stock market is largely affected by capital liquidity. The injection of more domestic and foreign capital has also brought more opportunities to the Chinese stock market.

03 After deep adjustments, the valuation level of China Securities Securities was low.

From February 2021 to March 2022, it took 13 months，China Securities as a whole experienced a round of decline at a historic level.The overall decline in the US stock market reached 75%, the Hong Kong Hang Seng Index fell by up to 45%, the Hang Seng Technology Index fell by up to 70%, and the A-share Shanghai Stock Index fell by up to 20%. Whether it was the duration of the decline or the overall decline, it was rare in history.

Through this round of decline, the overall valuation of China Securities has reached an extremely low level in history.

Judging from the data, since the US and Hong Kong China Stock Exchange have listed many high-growth technology companies that have not yet made a profit in the past two years, the price-earnings ratio has little reference significance.We use the net market ratio (PB) level as a reference.

After this long round of deep adjustments,The net market ratio valuation of China Securities has fallen to almost its lowest point in history.For example, it is more representative among A-sharesThe China Securities 500 Index is already cheaper than 94.6% of the time in history, in the Hong Kong stock marketThe Hang Seng Tech Index is cheaper than 96.6% of the time in history, andThe China Internet Index is even cheaper than the historical 99.5% of the time.

In contrast, the current net market ratio valuation of the relatively representative S&P 500 index and the NASDAQ 100 index among US stocks is already over 90% more expensive than in history.

Risks are rising; opportunities are falling.After a historical level of decline, the valuation of China Securities and Securities is already relatively low, which may also mean more opportunities.

Of course,While focusing on investment opportunities, it is important to note that any investment is riskyBehind the potentially high returns of stock investment, there is also a high level of risk. After a long period of deep decline, there is still great uncertainty about the short-term trend.

However,In the long run, buying stocks means buying companiesA booming economy like China has provided excellent companies, including some Chinese securities, with the best soil for survival and development. At the same time, more and more capital inflows will also bring more liquidity to China's securities, along with the overall endogenous growth and capital promotion of China's securities,The extremely sluggish valuations of some excellent companies may also be repaired and returned to reasonable valuations, bringing investors long-term investment returns.

$Hang Seng Index (800000.HK)$ $Hang Seng TECH Index (800700.HK)$ $TENCENT (00700.HK)$ $Alibaba (BABA.US)$

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